Western Australia weighs refinery sites amid power supply hurdles

Western Australia is exploring the possibility of establishing a new oil refinery, with the government announcing a pre-feasibility study to examine potential locations. While the state's Energy Minister sees the move as logical, citing ideal locations, the Mid West region faces significant power supply challenges that could hinder development.

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The feasibility study will examine all location options across WA including Oakajee, Kwinana or Kemerton.

Joanne Fabling, chief executive of the Mid West Development Commission, highlighted the critical need for enhanced power infrastructure, specifically a 330KV transmission line, to connect Geraldton and support industrial growth. She noted that existing power constraints already affect current businesses and limit opportunities for major projects, despite their potential for strong returns.

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We have long known that the Mid West has power constraints, especially even for our existing businesses and supply.

Further complicating matters, legislation prevents private entities from owning public power infrastructure, creating a "red tape" issue for potential investors. Fabling expressed skepticism about the timeline for progress, stating that "a lot of water between an announcement and anything progressing." The Oakajee Strategic Industrial Area, designated for heavy industry, remains undeveloped despite being identified over 20 years ago for a potential second port.

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It's hurting our opportunities to progress major projects … that would deliver great return on investment.